Overview

TDS stands for tax deducted at source. As per the Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. TDS has to be deducted at the rates prescribed by the tax department.

TDS on Salary: An employer is required to deduct TDS from the salary payable to the employees. When an employer is paying salary to an employee, he is responsible for deducting TDS on an average rate of income tax based on the prevailing rate during the financial year by considering the estimated income of the assessee. Tax on Salary deducted by the employer shall be deposited with the Government before the prescribed due date.

The dates of submitting TDS for every quarter are: